Diebold Nixdorf

Diebold Nixdorf Inc.
Public
Traded as
Industry Banking & Retail
Founded 2016
Founder Diebold and Wincor Nixdorf
Headquarters North Canton, Ohio, United States
Paderborn, Nordrhein-Westfalen, Germany
Area served
 Worldwide
Key people
 Andy Mattes (CEO)
Eckard Heidloff (president)
Products Automated teller machines, banking-industry services and software, retail point of sale systems, software and services
Services Design, production, distribution, maintenance
Revenue USD$5.2 billion (2014)[1]
Number of employees
 25,000[2]
Subsidiaries Diebold, Wincor Nixdorf
Website DieboldNixdorf.com

Diebold Nixdorf is an international technology and services company formed on August 15, 2016 through the merger of Diebold Inc. and Wincor Nixdorf.[2] After merger talks started in the summer of 2015,[3] the two companies entered into a business combination agreement in November 2015.[4] Andy Mattes serves as CEO,[5][6] while Eckard Heidloff of Wincor Nixdorf was appointed president.[7] Diebold Nixdorf is organized into three geographic regions: the Americas, Asia Pacific, and one region for Europe, the Middle East, and Africa.[8] The company controls about 35 percent of the global ATM market as of 2016,[4] making it "the world’s largest maker of cash machines and systems"[9] by market share.[10] Annual revenue for 2016 has been projected by the press to approach USD $5 billion.[11]

History

Background (1859-2014)

Main articles: Wincor Nixdorf and Diebold

The security and software company Diebold (/ˈdiːboʊld/, DEE-bold) was founded in 1859[12] as an American financial self-service, security and services corporation[13] in Cincinnati, Ohio,[14] with headquarters later moved to the Akron-Canton area.[15][16] Diebold went public in 1964[14] and subsequently acquired various other companies, including the Brazilian ATM manufacturer Procomp Amazonia Industria Electronica, S.A. in 1999,[17] the financial self-service assets of Getronics NV and Groupe Bull in 2002,[18] the Brazilian online banking company Gas Tecnologia in 2012,[19] the Danish PIN pad maker Cryptera in 2014,[20] and the Canadian ATM software company Phoenix Interactive Design in 2015.[21] With 2015 revenues of US$2.42 billion,[22] the company as of summer 2016 was the largest provider of ATMs in the United States,[13][23] with divisions operating internationally as well.[24]

The predecessor company Wincor Nixdorf was founded in 1952 by Heinz Nixdorf as a German security and technology company. Originally known as Laboratory for Impulse Technology and since 1968 as Nixdorf Computer,[3] in 1990 Nixdorf Computer was acquired by Siemens[3] and renamed Siemens Nixdorf Informationssysteme.[25] It went on to become the largest IT company in Germany and no. 2 Europe.[25][26] KKR and Goldman Sachs Capital Partners purchased the company in 1999.[3] In 2000 it was renamed Wincor Nixdorf.[25] In 2004 the company was listed on the stock exchange.[3] ATMs and banking systems accounted for around two thirds of its sales as of June 2015, with other products including "payment systems for retailers such as so-called Points of Sale (POS)."[3] As of March 2016, Wincor Nixdorf was active in 130 countries and had around 9,000 employees.[9]

Acquisition talks (2015)

In June 2015, Diebold, Inc. was reportedly in talks to acquire Wincor Nixdorf, its German rival.[3] As Wincor Nixdorf generated 68 percent of its USD$2.76 billion in sales in Europe in 2015,[9] the press reported that the deal would "give Diebold a stronger presence in Europe," among other benefits to both companies.[27] Diebold initially offered to purchase Wincor Nixdorf for $1.9 billion in October 2015, leading to a month of negotiations with Wincor shareholders and management.[1] By November 2015, Diebold's shares had risen 19% since its initial offer.[1]

Diebold Inc. and Wincor Nixdorf AG entered into a business combination agreement on November 23, 2015, with Diebold offering $1.8 billion in cash and shares to finance the merger.[4] It was announced that the combined company would be named Diebold Nixdorf.[28] With registered offices in North Canton, Ohio, the new company would be operated from headquarters in North Canton and Wincor Nixdorf's facilities in Paderborn, Germany.[28] Software development would largely take place in North America, with Diebold citing their Phoenix Interactive Design division based in Ontario, Canada.[28] Further development takes place in Utrecht in The Netherlands.[29]

The press reported that the upcoming company would control about 35 percent of the global ATM market,[4] making Diebold Nixdorf "the world’s largest maker of cash machines and systems"[9] by market share.[10] The combined revenue of Diebold and Wincor Nixdorf equaled $5.2 billion for 2014,[1] with Reuters reporting that the impending deal was "expected to yield at least $160 million in annual costs savings" for the two combined companies.[4]

Final stages and formation (2016)

After initial uncertainty that Wincor Nixdorf shareholders would support ceding their stocks,[30] Diebold announced it had satisfied the share tender condition to acquire Wincor Nixdorf on March 24, 2016,[31] with the deal expected to close in the summer[9] after regulatory approval.[27][32] Although Wincor Nixdorf's stock value had struggled throughout 2014 and 2015, ostensibly due to market volatility in Russia and Asia and decreasing hardware prices,[3] Wincor Nixdorf's stock value rose 25 percent after the announcement. Diebold's value increased 7.2 percent.[9] In April 2016, the Financial Times reported that Diebold would be pushing Diebold Nixdorf into focusing on "smart" technology as well as hardware, with the goal of making "using a machine a breezy, more personal experience that does away with debit cards."[7] Annual revenue for 2016 has been projected by the press to near about USD $5 billion.[11]

On August 15, 2016, it was announced that the merger had been completed, with Diebold Nixdorf beginning operations under the name Diebold Nixdorf on August 16.[6] Andy Mattes was announced as chief executive officer.[2][6] According to Mattes, integration had been ongoing over the months prior, with plans for the company to have "two centers of Gravity"[6] though its Green and Paderborn headquarters.[6] Canton Rep reported that annual sales for the new company would likely be USD $5 billion.[6] In late June, the U.K. Competition and Markets Authority announced it had launched a merger inquiry examining how the merger would effect market competition in the UK.[33] As of August 19, Diebold and Wincor Nixdorf branding remained separate in Britain pending the conclusion of the ongoing merger inquiry.[33][34]

Corporate structure

Diebold Nixdorf is organized in a structure comprised of three geographic regions, including the Americas, the Asia Pacific region, and a final division for Europe, the Middle East, and Africa.[8] and three product and services lines of business (services, software, and systems).[35]

Products and services

See also: Diebold products and Wincor Nixdorf products

Both of Diebold Nixdorf's founding companies were heavily focused on the deveploment and maintenance of automated teller machines, and as of August 2016, the Canton Repository reported that Diebold Nixdorf serviced 1 out of every 3 ATMs worldwide.[11] The company has recently focused on "smart" ATMs,[36] and is also increasingly focused on services and financial software,[5] with CEO Andy Mattes announcing plans to "double the company’s software engineers."[36]

For retail, Wincor Nixdorf develops point-of-sale (POS) systems that use hardware such as its BEETLE system, as well as retail peripherals such as displays and keyboards. The company also produces scanning products and self-checkout products, as well as reverse vending systems, information kiosks, and electronic shelf labeling (ESL).[37]

See also

References

  1. 1 2 3 4 Darrow, Barb (November 23, 2015). "Diebold Tweaks Offer to Get Wincor Nixdorf Deal Done". Fortune. Retrieved 2016-09-14.
  2. 1 2 3 "Newly combined Diebold Nixdorf unveils logo". Ohio.com. August 16, 2016. Retrieved 2016-09-14.
  3. 1 2 3 4 5 6 7 8 Huebner, Alexander (9 June 2015). "Diebold in talks to buy Wincor Nixdorf". Reuters. Retrieved 10 June 2015.
  4. 1 2 3 4 5 "ATM maker Diebold offers $1.8 billion for German peer Wincor Nixdorf". Reuters. November 23, 2015. Retrieved 2016-09-14.
  5. 1 2 "Diebold Nixdorf unveils new branding". Crain's Cleveland Business. August 16, 2016. Retrieved 2016-09-14.
  6. 1 2 3 4 5 6 Pritchard, Edd (August 15, 2016). "Diebold finalizes Wincor Nixdorf merger". Canton Rep. Retrieved 2016-09-14.
  7. 1 2 McGee, Patrick (April 6, 2016). "Diebold Nixdorf bets on future of 'smart ATMs'". Financial Times. Retrieved 2016-09-14.
  8. 1 2 "Regions". Diebold Nixdorf. Retrieved 2016-08-20.
  9. 1 2 3 4 5 6 Nicola, Stefan (March 24, 2016). "Diebold Takeover of ATM Rival Wincor Barely Clears Hurdle". Bloomberg.
  10. 1 2 Das, Saikat (January 18, 2016). "Diebold Nixdorf, world's largest ATM maker, ties up with AGS to manufacture 40,000 machines". India Times. Retrieved 2016-09-14.
  11. 1 2 3 Pritchard, Edd (August 16, 2016). "Diebold Nixdorf era begins". CantonRep.com. Retrieved 2016-09-14.
  12. ↑ "Diebold Establishes Subsidiary in South Africa; Wins Five-Year Contract to Service 2500 ATMs for Standard Bank of South Africa". Diebold, Incorporated - press release. April 22, 1998. Retrieved 2016-09-14.
  13. 1 2 "Carlyle to Buy De La Rue Unit for 360 Million Pounds". Bloomberg. June 16, 2008. Retrieved 2016-06-10.
  14. 1 2 "History". diebold.com. Retrieved 2016-09-14.
  15. ↑ "About Us — At-A-Glance". Diebold. Retrieved September 30, 2007.
  16. ↑ Wilcken, Richard (September 22, 2015). "Diebold corp headquarters". Diebold Corp. Retrieved September 22, 2015. Diebolds World HQ address.
  17. ↑ "Diebold acquires Procomp". ATM Marketplace. October 18, 1999. Retrieved 2016-09-14.
  18. ↑ "Diebold acquires Groupe Bull's financial self-service business". ATM Marketplace. February 27, 2002. Retrieved 2016-09-14.
  19. ↑ Sposito, Sean (January 24, 2013). "Diebold CEO Pushed Out Amid Disappointing Results". American Banker. Retrieved 2016-09-14.
  20. ↑ Cho, Janet (June 25, 2014). "Diebold buying Cryptera, a Danish maker of PIN pads for ATMs and other self-checkout devices". Cleveland.com. Retrieved 2016-09-14.
  21. ↑ Cho, Janet (March 16, 2015). "Diebold acquires Phoenix Interactive Design, a Canadian ATM software company". Cleveland.com. Retrieved 2016-09-14.
  22. ↑ Pritchard, Edd (February 11, 2016). "Diebold sets the stage for growth in 2016". CantonRep.com. Retrieved 2016-09-14.
  23. ↑ Conneally, Tim (2011). "Prototype of first virtualized ATM: Diebold calls it 'a game changer'". BetaNews. Retrieved 2016-09-14.
  24. ↑ "Company Overview of Diebold, Incorporated". Bloomberg. Retrieved 2016-09-14.
  25. 1 2 3 This article is based on material taken from the Free On-line Dictionary of Computing prior to 1 November 2008 and incorporated under the "relicensing" terms of the GFDL, version 1.3 or later.
  26. ↑ "With Austin operations, Wincor Nixdorf aims to bring high-tech to cash handling". The Statesman. July 16, 2011. Retrieved 2016-09-14.
  27. 1 2 Peyton, Antony (March 29, 2016). "Diebold and Wincor Nixdorf merger on track, creates world's largest ATM maker". Banking Technology. Retrieved 2016-09-14.
  28. 1 2 3 "Diebold remains committed to area despite planned combination with Wincor Nixdorf". CantonRep.com. November 24, 2015. Retrieved 2016-09-14.
  29. ↑ "Wincor Nixdorf opens independent software headquarters in Utrecht". Dutch Daily News. September 22, 2013. Retrieved 2016-09-14.
  30. ↑ Henning, Eyk (March 22, 2016). "Diebold's Takeover of Wincor Nixdorf Looks Uncertain". Wall Street Journal. Retrieved 2016-09-14.
  31. ↑ "Diebold successfully meets tender condition for Wincor Nixdorf shares" (PDF). diebold.com. March 24, 2016. Retrieved 2016-09-14.
  32. ↑ "Diebold Announces Final Results of Takeover Offer for Wincor Nixdorf" (PDF). Diebold.com. April 15, 2016. Retrieved 2016-09-14.
  33. 1 2 Pritchard, Edd (August 19, 2016). "Regulatory agency promises 'in-depth merger investigation' for Diebold Nixdorf". CantonRep.com. Retrieved 2016-09-14.
  34. ↑ Suttell, Scott (August 19, 2016). "U.K. regulator has some concerns about the merger that created Diebold Nixdorf". Crain's Cleveland Business. Retrieved 2016-09-14.
  35. ↑ "About - Services / Software / Systems". dieboldnixdorf.com. Retrieved 2016-08-20.
  36. 1 2 Israelson, David (August 15, 2016). "Will cashless pay kill the ATM?". The Globe and Mail. Retrieved 2016-09-14.
  37. ↑ "Products". wincor-nixdorf.com. Retrieved 2016-09-14.

External links

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